Australian dairy co-operative Murray Goulburn plans to invest A$19.1m ($19.9m) in its facility in Leongatha, Australia, in order to boost the site's UHT manufacturing output.
The expansion project, which will enable the company to meet the increased demand for UHT milk, involves the installation of two new production lines at the facility. It is expected to increase the facility's UHT capacity by approximately 70 million liters each year.
Work on the Leongatha facility upgrade is expected to begin later this month and is slated to be completed by December 2013.
The upgrade is a part of the co-operative's planned A$200m ($208.7m) investment, which was announced last year, in dairy food manufacturing facilities for UHT milk, butter/spreads and cheese.
Murray Goulburn managing director Gary Helou said the demand for Australian dairy products is growing rapidly, and the company had to upgrade Leongatha facility in order to meet the demand for UHT milk.
"The Leongatha upgrade will help MG meet immediate demand for UHT milk from world markets, particularly Asia, while the long term strategy is confirmed."
"It will increase our ability to supply growth markets and improve our productivity," Helou added.
According to the Murray Goulburn, the expansion and upgrade of MG's UHT manufacturing footprint had been prioritized as the business was currently operating at capacity.
The Leongatha upgrade is being implemented in parallel to Murray Goulburn's developing its longer term investment manufacturing strategy to meet future domestic and international demand, and to increase its returns to its supplier-shareholders.
